2 0 1 6 E D T E C H O U T L O O K

Outline

Challenges

Drivers

Around the Corner

Engage

Outline

Challenges • Unequal access to quality education • Varied student needs • New demands for life and career success • Demands on teachers

Drivers

Around the Corner

Engage

CHALLENGES | Unequal access

Students in the wealthiest districts are four grade levels ahead of those in poorest districts

Aca

dem

ic a

chie

vem

ent

Family income level

Source: Reardon, 2016

CHALLENGES | Unequal access

High-income families invest in their kids like never before

Source: Russell Sage Foundation, 2012

0

2,000

4,000

6,000

8,000

10,000 Sp

endi

ng in

dol

lars

1972 to 1973 1983 to 1984 1994 to 1995 2005 to 2006

Bottom quintile Top quintile

High-income families spend 7x more on enrichment than low-income families

CHALLENGES | Unequal access

College completion gap between income levels is widening

Bachelor's Attainment by Family Income

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

6% 11% 15%

40%

77%

34%

17%

9%

Source : Pell Institute, 2015

Top Quartile

Third Quartile

Second Quartile

Bottom Quartile

CHALLENGES | Varied student needs

Children in US public schools are more diverse than ever

Increasing racial diversity Growing English Learner population

Projected 2023 K12 population of public school students projected to be ELL by 2025

30% Hispanic

45% White

25% 25% Other races*

*Black, Asian/Pacific Islander, Two or more races, Native American

Differing starting lines

Kinder readiness largely correlated with income level

0

10

20

30

40

50

60

70

80

Poor Near-Poor Moderate or High Income

Scho

ol re

adin

ess

Sources: Brookings, 2012; NCES, IES, U.S. Department of Education, 2016; Education Week, 2014; National Education Association, 2008

CHALLENGES | New demands for life and career success

Workforce shifts from manufacturing toward creative and service

Percentage of Workforce

1900

0%

10%

20%

30%

40%

50%

’20 ’40 ’60 ’80 2000 ’20

Service

Creative

Manufacturing

Agriculture

Projections

Source: Florida, 2012

CHALLENGES | New demands for life and career success

Are we preparing kids for success in the new economy?

Top 10 Skills Needed in 2020

Complex Problem Solving

Critical Thinking

Creativity People Management

Coordinating with Others

Emotional Intelligence

Judgment & Decision Making

Service Orientation

Negotiation Cognitive Flexibility

1 2 3 4 5

6 7 8 9 10

Source: World Economic Forum, 2016

New assessments

critical-thinking, problem-solving, analytical skills

New questions

collaborative problem solving

New format

reflective of high school and college learning, “inspires

productive practice”

Redesign in progress

discipline-specific inquiry, reasoning, communication

CHALLENGES | New demands for life and career success

Rethinking assessments

Sources: Common Core State Standards Initiative; OECD, 2015; Advances in AP; College Board

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Architecture andEngineering

Computer Science andMathematics

Life Sciences Physical Sciences Social Sciences

BS, MS, and PhD degrees granted in 2009 Annual jobs 2010-2020

CHALLENGES | New demands for life and career success

Demand outpaces supply for computer science degrees

Sources: Bureau of Labor Statistics; National Science Foundation, 2012, LinkedIn, 2014

CHALLENGES | Demands on teachers

Teacher shortage in high-demand areas

Obama calls for 100,000 STEM teachers in 10 years

STEM

50% of urban school districts project shortage of bilingual teachers

Bilingual

51% of all schools have difficulty

recruiting SPED teachers

Special ED

100K

Sources: Council of the Great City Schools, 2013; The White House, 2011; U.S. Department of Education, 2011

CHALLENGES | Demands on teachers

Teaching is evolving quickly, while PD and support are slow to follow

Outline

Drivers

• Technology infrastructure in schools • K-12 computer science • School model innovation • VC investment in edtech

Around the Corner

Engage

Challenges

DRIVERS | Technology infrastructure in schools

School connectivity is improving

99% of students promised access by 2018

through Obama’s ConnectED

77% of US districts have access to high speed broadband

Source: EducationSuperHighway, 2015

But… Current “high speed” target of 100kbps/student may be insufficient for effective technology use in schools

DRIVERS | Technology infrastructure in schools

Students have greater access to devices at school

1 in 5 schools have 1:1 device

to student ratio

83% of students reported using

a laptop for schoolwork in 2015

Sources: Pearson, 2015; Amplify, 2014

DRIVERS | Technology infrastructure in schools

Students are mobile natives

82% of high school students

regularly use smartphones

Source: Pearson, 2015;

DRIVERS | Technology use in schools

Google-ization of schools

Source: Clarity Innovations, 2014; Futuresource Consulting 2015

Google Apps for Education Users Worldwide

2007 2014 0

10

20

30

40

Use

rs in

mill

ions

51% of devices sold to schools in Q4’15 were Chromebooks

Google Apps for Education

Classroom Gmail Drive Calendar Vault

Docs Sheets Slides Sites Hangouts

DRIVERS | Technology use in schools

Every Student Succeeds Act provides unprecedented funding

Up to 15% on tech infrastructure

x yrs ~ $1B 4

85% R&D, PD & software

Source: eSchoolNews, 2015

DRIVERS | K-12 computer science

Computer science becomes national priority

We should…[offer] every student the hands-on computer science and math classes that make them job-ready on day one…

- Barack Obama, 2016 SOTU Address

• Computer science recognized as a core subject in the Every Student Succeeds Act

• Receives same priority as Math and English

Mat

h

Scie

nce

Engl

ish

Com

pute

r Sc

ienc

e

Source: EdTech Focus On K-12, 2015

DRIVERS | Innovation and investment in new school models

Student agency and personalized learning are gaining momentum

DRIVERS | VC investment in edtech

US K-12 edtech funding reached an all-time high

2010 $0

$200M

$400M

$600M

$800M

$1.0B

Inve

stm

ent

in K

-12

edte

ch

2011 2012 2013 2014 2015

Source: Edsurge, 2016

CONCERNS

However, K-12 edtech still has many challenges

Sources: Edsurge

Regulatory

Data privacy, state standards, and reporting requirements all

shape the landscape

Operational

Procurement and interoperability of edtech are unsolved

Outline

Challenges

Drivers

Around the Corner

Engage

Our Vision Given the unprecedented investment in K12 technology

infrastructure, school model innovation and edtech

Reach believes technology can play a role in increasing access to high quality education, addressing diverse student needs, and

preparing students for life and career success.

AROUND THE CORNER | Engaging all families in early learning

Parents stay connected to preschool and support learning at home

AROUND THE CORNER | A live tutor for every student

Low or no-cost tutoring and homework help

Then High-cost, in-person,

limited access

Now Low-cost, remote,

accessible

AROUND THE CORNER | Immersive experiences beyond classroom walls

Virtual reality exposes students to the world outside of their own classroom and community

VR brings to life a number of experiences that otherwise are really difficult to feature in the classroom. You can go places and see unknown phenomena, you can conduct experiments and see how things evolved.

- Felipe Sommer, Nearpod

Then

Geographically constrained

Now

Geographically and physically unbounded

AROUND THE CORNER | Kids as creators not consumers

Connected toys spur curiosity and build STEM skills through play

Then Static, generic, hardware

or software

Now Dynamic, customizable, combined software

and hardware

AROUND THE CORNER | Student collaboration anytime, anywhere

Students learn from each other and co-create projects across boundaries

Then Isolated, teacher-only audience

Now Connected, real world audience

AROUND THE CORNER | Students publish to real audiences

Students motivated by purposeful writing that extends beyond the classroom

Senator Carol Liu

AROUND THE CORNER | Connecting classrooms and workplaces

Professionals around the globe help students connect classroom learning with real-world applications

AROUND THE CORNER | Build social capital

Create meaningful relationships between students & mentors, at scale

Then Disconnected, isolated

Now Connected, supported, integrated

Then Superficial, limited insight

Now Insightful, actionable

AROUND THE CORNER | Continuous pulse on student learning

Realtime checks for understanding enable immediate intervention

Do you

understand?

Then Time-consuming, laborious

Now Machine learning assisted, efficient

AROUND THE CORNER | Students receive timely feedback

Machine learning makes grading and giving feedback more efficient

AROUND THE CORNER | Integrated support for English learners

Schools systematically support English language development across classrooms

AROUND THE CORNER | Schools support social emotional learning

Technology tools help to integrate social emotional learning into teaching practices

Then Top-down, one-size fits all

Now Differentiated, personal, virtual

coaches

AROUND THE CORNER | Responsive and personalized professional development

Teachers have a voice and receive differentiated and personal support

Outline

Challenges

Drivers

Around the Corner

Engage

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Reach Capital is on a mission to provide opportunity and access to all students by funding the most inspirational, uplifting

and engaging educational tools.